Making the right decision

How to make a decision that's right for you

Deciding when to retire and how to take your pension can seem overwhelming. It may help to take stock of your pension and break things down using the steps below.

Think about what your costs will be when you retire
Consider how you will pay for your costs when you stop work
See if you're on track and understand the options available
Look at what you can do if the numbers don’t add up
Get advice before taking action

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1. Think about what your costs will be when you retire

Think about how much you might need to spend, in order to have the retirement you want.

Use the Retirement Budgeting Calculator in your myRPS account to get a personalised prediction.

Visit the how much I’ll need for retirement page to find out more.

2. Consider how you will pay for your costs when you stop work

You may have several sources of income when you retire.

Find out what each of them are likely to be worth and add them together to see how much income you might have in total.

Some of your money may come from:

your RPS pension – check your Annual Benefit Statement, request an estimate or use the Pension Planner tool to find out how much your pension might be worth when you retire. Log in to your myRPS account to find out more.
your State Pension – the amount you receive is set by the Government. You can request an estimate on the Government website. You can also read more on the State Pension page.
other pensions – you may have a private pension or pensions linked to previous employment. You’ll need to speak to each of the providers individually for estimates on those accounts. If you’ve lost their contact details, the Pensions Tracing Service may be able to help. It’s a free, Government-backed, service available online and over the phone on 0800 731 0193. Other companies offer a similar service but many charge a fee. Visit the government website to find out more.
savings and investments – if you have savings outside your pension, get those statements from your bank or other provider

Keep in mind your income could be affected by:

life expectancy
changes in the law, including tax allowances
rates of inflation

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Use the tools in your myRPS account

The Retirement Budgeting Calculator and Pension Planner will help you work out how much you might need in retirement and whether your pension is on track to cover those costs. Try them by logging in to your myRPS account.

3. See if you're on track and understand the options available to you

Check if you’re on track to fund your future by comparing your income target from the Retirement Budgeting Calculator with the amount you expect to have coming in from your RPS pension and other income sources as detailed above.

These figures may change depending on how and when you decide to take your pension, so it’s important you understand the options available to you and what impact they might have on how much you get.

If you are an active DB member, you can try using the Pension Planner in your myRPS account. It will show you what your annual income could be when you stop work. It will also show how this might be affected by different ways of taking your pension, such as taking a lump sum or taking your benefits before claiming your State Pension and then levelling your income out afterwards. This is known as the ‘level pension option.’

Visit the ways to take my pension page for more information about these options.

Video: How to use the Planner

For step-by-step guide to using the Pension Planner watch this short video.

Remember, the Retirement Budgeting Calculator figures are based on the income you may need after tax, whereas the Pension Planner, available in your myRPS account gives you an estimate of what you might get from your pension before tax.

4. Look at what you can do if the numbers don’t add up

If you’re worried that the income you will have when you stop work won’t cover your expected costs, there are a number of things you can do before you stop work. This includes:

Topping up your pension– think about paying more into your pension if you can. This is known as making Additional Voluntary Contributions (AVCs). It’s tax-free up to certain limits. In the defined benefit (DB) section of the RPS, AVCs are known as BRASS. You can make BRASS payments regularly or as one-off payments. Visit the saving more with BRASS page to find out more.
Thinking about changing your retirement age – you can delay taking your pension. This would give you more time to build up your benefits. This is an important decision and we suggest you speak with a Financial Adviser first. Check the when to retire page for details on retiring at different times.
Clearing your debts – if possible, pay off any debts you owe before you retire. You can use the MoneyFit tool in your myRPS account for ideas on how to improve the way you manage money. This includes a personal action plan with helpful tips and advice to possibly free up more money to save in your pension. Log in to try MoneyFit now.

5. Get advice before taking action

You may want to get expert help before making any changes or taking your pension.

Visit the guidance and advice page for details on who to speak to for support.

If you’re ready to start taking your pension visit the applying for my pension page. It will tell you what to do next.

What to read next...

How much I'll need for retirement

If you’re getting ready to retire, or just thinking ahead, it’s good to know if your pension savings are on track.

Ways to take my pension

Understand the options available for taking your pension.

Guidance and advice

Useful contacts to support you through the retirement process.

I'm here to help.

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Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 100 Liverpool Street, London EC2M 2AT. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.